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Measurement Equipment Market Trends: Part One

Published: 24th April 2015

In two parts here’s our view of the pressures in the test and measurement equipment marketplace. Pressures which in most cases are providing benefits to the buyer and end user. Benefits that we at MCS Test Equipment commit to passing on to our customers in terms of product availability and choice but also in terms of value added from our team of experts.

To do this we’ll use a standard for such things – The Porter five forces analysis model at the core of which is Industry Rivalry.

Interestingly the industry has seen consolidation and expansion at the same time.

Consolidation examples include Danaher with Fluke and Tektronix / Keithley; Rohde & Schwarz with Hameg and Teledyne/ LeCroy.

Expansion continues with many entering the low-cost instrumentation market such as Extech, Rigol, Owon, Siglent, Instek.

This continues to cause a decline in entry-level instrument costs as these new but high-quality instruments penetrate the market. They are obviously seen as attractive and competitive as the bigger companies continue their acquisition strategies.

Even at the high end there are major opportunities for unique wireless communications and test tools. Many of these are featured as new products by MCS Test Equipment.

Also, consolidation and expansion in terms of market segments continues with many companies now producing PCI eXtensions for Instrumentation (PXI) products and more investments in PC based instruments. The PXI systems alliance membership continues to grow in terms of products and manufacturers.

Quoting technologist and journalist Ben Hammersley, “Fortunately, for most of us the future arrives not in an explosion but gradually, layering or assimilating with the past.” And looking toward the near future we see market disruption and continued increased demand. This turmoil and the fact that the market is being pulled by conflicting forces of consolidation and expansions means there are many gaps to be exploited which results in a more competitive market where in general prices continue to fall.

So, to re-iterate:- benefits that we at MCS Test Equipment commit to passing on to our customers in terms of product availability and choice but also in terms of value added from our team of experts.

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